Dobler Company Uses a Periodic Inventory System An End of the Month (1/31/2022) Inventory Showed That 240

question 23

Multiple Choice

Dobler Company uses a periodic inventory system.Details for the inventory account for the month of January 2022 are as follows: $$\begin{array} { l l r r } & \underline { \text { Units } } & \underline{\text { Per unit price }} & \underline { \text { Total } } \\\text { Balance, } 1 / 1 / 2022 & 300 & \$ 5.00 & \$ 1,500 \\\text { Purchase, } 1 / 15 / 2022 & 150 & 5.30 & 795 \\\text { Purchase, } 1 / 28 / 2022 & 150 & 5.50 & 825\end{array}$$ An end of the month (1/31/2022) inventory showed that 240 units were on hand.If the company uses FIFO what is the value of the ending inventory?

• A)$1320
• B)$1200
• C)$1302
• D)$1818

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Definitions:

Current Assets

Assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle.